Ch32 Creation and Operation of a Partnership Flashcards Preview

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Flashcards in Ch32 Creation and Operation of a Partnership Deck (32):
1

Each partner has this to enter into binding contracts on behalf of the partnership.

Authority

2

Unless otherwise stated, profits and losses of the partnership will be shared ______________.

Equally

3

The partnership agreement must meet this many requirements of a valid contract.

Five

4

In absence of other evidence, it should be held that a partnership existed.

Prima Facie Evidence

5

Each partner must ___________ to the partnership for all business transactions.

Account

6

The partner has no right to withdraw any part of the original investment without the consent of the other partners.

Concent

7

This kind of damage can be done to the copartner by betraying their trust.

Irreparable

8

. A partner has ___________ of the torts of another partner committed in the course of partnership business (instructor: ignorance is no excuse).

Liability

9

If any partner __________ in this duty, the other partners have several legal remedies to redress the wrong.

Fails

10

In this type of partnership each partner owns and can sell only a pro rata interest in the partnership as an entity.

Tenancy

11

Unless otherwise stated; each partner has the duty to _________on behalf of the partnership.

Work

12

In a case of a false impression of a partnership, the law will frequently hold that the apparent partners are _________ from denying that a partnership exists.

Estopped

13

The partners have this type of liability on all partnership contractual liabilities unless the contract says otherwise.

Joint

14

A __________ partner does not get full ownership on the death of the other owner.

Surviving

15

This is the written partnership agreement.

Articles of Partnership

16

Cengage Learning: On the face of it

Prima Facie

17

Cengage Learning: Evidence sufficient on its face, if uncontradicted

Prima Facie Evidence

18

Cengage Learning: Written partnership agreement

Articles of Partnership

19

Cengage Learning: Ownership of partner in partnership property.

Tenancy in Partnership

20

1. A partnership must be formed by a written agreement.

False

21

2. If Juan and Sebastian want to form a partnership, they must draw up a written partnership agreement if the partnership is to be enforceable.

False

22

3. All partnership decisions are made by majority vote.

False

23

4. Each partner has the duty to inform the other partners about matters relating to the partnership.

True

24

5. The Uniform Partnership Act requires that a partnership register a company name.

False

25

6. A major breach of the partnership agreement may justify dissolution of the partnership.

True

26

7. Articles of partnership hardly ever state how partners will share profits and losses.

False

27

8. Felix and Art co-own a furniture store. Felix and Art jointly control the business and they share the net profits and losses derived from the store.

Situation a partnership exist between Felix and Art

28

9. When evidence is proof of something in the absence of other evidence, it is said to be ________ evidence.

Prima Facie

29

10. When the conduct of people who are not partners seems to mislead others into thinking they are partners, there is a partnership by ________.

Estoppel

30

11. In a/n ________ in partnership, each partner owns and can sell only a pro rata interest in the partnership as an entity.

Tenancy

31

12. Among the common duties that partners owe to each other include:

Duty to exercise loyalty and good faith.

32

13. Bayer, a partner in the firm of Bayer and Black, without the consent of Black, used firm money in a speculative venture in her own name and realized a profit. Billingsley is the attorney who sets the venture up and files all the paperwork. Who would bear the loss if Bayer's venture failed?

Bayer